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TMI Blog2015 (10) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... films should not be credited to the profit and loss account in one year. There was no estoppels in these matters and the Assessing Officer was not bound by the incorrect method of accounting followed by the assessee or even accepted by the department in earlier years. The Assessing Officer therefore correctly made addition because the whole amount had accrued to the assessee and received by her in all the accounting years. See Smt. G. Krishnammal. Versus DCIT [1997 (8) TMI 122 - ITAT MADRAS-C] - Decided against assessee. - I.T.A. Nos. 1358 & 1359/Mds/2015 - - - Dated:- 31-7-2015 - Shri A. Mohan Alankamony and Shri V. Durga Rao,JJ. For The Appellant : Mrs. J. Sree Vidya, Advocate for Mr. V.S. Jayakumar, Advocate For The Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the ld. CIT(A). The ld. CIT(A), by following the order of his predecessor vide ITA No.608//2010-11 dated 23.07.2012, decided the issue against the assessee by observing that it is evident that the sum received by the assessee is not an advance and it takes only the character of income. The nomenclature used by the assessee is immaterial. Accordingly, the appeal filed by the assessee was dismissed. 4. On being aggrieved, the assessee carried the matter in appeal before the Tribunal. 5. The ld. Counsel for the assessee has fairly accepted that the issue involved in this appeal is squarely covered against the assessee by the decision of the Tribunal in assessee s own case for the assessment year 2008-09. 6. We find that the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(24) it may still be income if it partakes the nature of the income. Further, Hon'ble Supreme Court in the case of Emil Webber Vs CIT (200 ITR 433) held that anything which can be properly described as income is taxable under the Act unless it is exempted under one or other provisions of the Act. The sum received by the appellant is neither advance nor deposit but only a consideration for transfer of movie rights which has accrued and received during the relevant financial year. Therefore the receipt partake the character of income accrued and received during the year and hence liable to be taxed in the year of receipt. The nomenclature used by the appellant that the receipt is 'prereceived' is not backed by any material eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permanent period. b) The Assignee shall be entitled to re-assign license and/or exercise in any other manner, either by itself or through any third party of its choice, the rights assigned hereunder, without any further reference to the Assignor (Copyright Holder). 11. On entering into this agreement, assessee has received Rs..2,00,00,000/- during the assessment year under consideration. As could be seen from the above clause, it is not from the lease of copy rights but clause very specifically refers to assignment, transfer and sale of home video copy rights of 73 Tamil films as mentioned in the schedule absolutely and irrevocably for the territory of India for perpetual and permanent period. We also find that co-ordinate Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come which had accrued to her and which had been received by her and was correctly includible in her total income. In view of section 5(1), the amount was chargeable to tax under section 4, Apportionment of the said sum for five years had no meaning because the terms of the agreement could not override the provisions of the Act enacted by the Legislature. The assessee was thus bifurcating the trading receipts of one year into five years, thereby shifting the profits of one year into five years which was not a correct method of computing the profits and gains of business. When the assessee had debited the entire cost of acquisition of rights of distribution, exploitation and exhibition of the films to the profit and loss account, there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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